Mortgages Payable and Debt Maturities

6 Months Ended

Jun. 30, 2022

7. MORTGAGES PAYABLE AND DEBT MATURITIES

Mortgages payable at June 30, 2022 and December 31, 2021 consist of the following:


(dollars in thousands)	June 30, 2022		December 31, 2021
4.065% mortgage note due April 1, 2023, secured by one self- storage facility with an aggregate net book value of $7.0 million, principal and interest paid monthly (effective interest rate 4.32%)	$	3,674	$	3,728
5.26% mortgage note due November 1, 2023, secured by one self-storage facility with an aggregate net book value of $7.6 million, principal and interest paid monthly (effective interest rate 5.58%)		3,609		3,650
4.4625% mortgage notes due December 6, 2024, secured by three self-storage facilities with an aggregate net book value of $53.9 million, principal and interest paid monthly (effective interest rate 3.22%)		22,298		22,427
4.44% mortgage note due July 6, 2025, secured by one self-storage facility with an aggregate net book value of $13.3 million, principal and interest paid monthly (effective interest rate 4.50%)		6,168		6,228
5.99% mortgage note due May 1, 2026, secured by one self- storage facility with an aggregate net book value of $6.3 million, principal and interest paid monthly (effective interest rate 6.53%)		897		997
Total mortgages payable	$	36,646	$	37,030

The table below summarizes the Company’s debt obligations at June 30, 2022. The estimated fair value of financial instruments is subjective in nature and is dependent on a number of important assumptions, including discount rates and relevant comparable market information associated with each financial instrument. The fair value of the fixed rate term notes and mortgage notes were estimated by discounting the future cash flows using the current rates at which similar loans would be made to borrowers with similar credit ratings and for the same remaining maturities. These assumptions are considered Level 2 inputs within the fair value hierarchy as described in Note 9. The carrying values of our variable rate debt instruments approximate their fair values as these debt instruments bear interest at current market rates that approximate market participant rates. This is considered a Level 2 input within the fair value hierarchy. The use of different market assumptions and estimation methodologies may have a material effect on the reported estimated fair value amounts. Accordingly, the estimates presented below are not necessarily indicative of the amounts the Company would realize in a current market exchange.


			Expected Maturity Date Including Discount
(dollars in thousands)	2022		2023		2024		2025		2026		Thereafter		Total		Fair Value
Line of credit - variable rate LIBOR + 0.95% (2.58% at June 30, 2022)	$	—	$	303,000	$	—	$	—	$	—	$	—	$	303,000	$	303,000
Notes Payable:
Term note - fixed rate 4.533%		—		—		175,000		—		—		—		175,000		174,053
Term note - fixed rate 3.50%		—		—		—		—		600,000		—		600,000		566,212
Term note - fixed rate 3.875%		—		—		—		—		—		450,000		450,000		427,788
Term note - fixed rate 3.67%		—		—		—		—		—		200,000		200,000		181,346
Term note - fixed rate 4.00%		—		—		—		—		—		350,000		350,000		325,813
Term note - fixed rate 2.20%		—		—		—		—		—		400,000		400,000		318,637
Term note - fixed rate 2.40%		—		—		—		—		—		600,000		600,000		470,277
Mortgage note - fixed rate 4.065%		54		3,620		—		—		—		—		3,674		3,639
Mortgage note - fixed rate 5.26%		42		3,567		—		—		—		—		3,609		3,609
Mortgage notes - fixed rate 4.4625%		—		—		22,298		—		—		—		22,298		21,216
Mortgage note - fixed rate 4.44%		61		126		131		5,850		—		—		6,168		6,027
Mortgage note - fixed rate 5.99%		103		216		229		243		106		—		897		911
Total	$	260	$	310,529	$	197,658	$	6,093	$	600,106	$	2,000,000	$	3,114,646